Popular Posts

Montenegro to put airports up for concession

Get link

Facebook

Twitter

Pinterest

Email

Other Apps

The Montenegrin government has outlined plans to put its two international airports, Podgorica and Tivat, up for concession after it was unable secure a loan with the European Bank for Reconstruction and Development (EBRD) for the expansion of Tivat Airport. "Several well established companies have already shown serious interest. We are currently working on preparing a concession model with the World Bank and I believe this process will be completed swiftly", Montenegro's Prime Minister, Duško Marković, said. He added that the concession is vital in order for Tivat Airport to follow through with its plans to build a new passenger terminal, extend its runway and overhaul its taxiways.

The EBRD was set to approve a fifty million euro loan for the development of Tivat Airport in the coming weeks, however, it requested for the Montenegrin government to guarantee the airport would remain in state hands over a period of ten years following the completion of the expansion project. Mr Marković's administration was unable to agree to such terms. "We are undergoing fiscal consolidation and each new debt makes it harder for us to achieve our strategic goal of macroeconomic and financial stability", the Prime Minister said. Montenegro's opposition parties have slammed the government's concession plans, noting that operator Airports of Montenegro is one of the country's most profitable public enterprises.

The government is yet to decide whether both Podgorica and Tivat will be offered to investors as part of a package or whether the two will be put on the market separately. Other details are also being determined. Montenegro Airlines could also be offered as part of the deal. Several years ago both El Al Israel Airlines, as well as Turkish Airlines, expressed interest in purchasing a stake in the Montenegrin carrier if it were given control over Podgorica and Tivat airports. In late 2014, the French concession and construction company Vinci expressed interest in establishing a partnership with Podgproca and TIvat. The CEO of Airports of Montenegro, Milovan Djuričković, who has run the company since 1999 but is believed to be on his way out, recently spoke out against attempts to privatise the two airports. “There can only be three reasons for privatising a company. One is if the management is bad, which isn’t the case, the second is if the company is unable to finance further development and lastly if the government is strapped for cash. An airport is of strategic importance to a country”, Mr Djuričković said.

"There can only be three reasons for privatising a company. One is if the management is bad, which isn’t the case, the second is if the company is unable to finance further development and lastly if the government is strapped for cash. An airport is of strategic importance to a country"

They should also think of expanding Podgorica. I was there last year, the airport is so small and they don't let you go through passport check into the departure lounge until an hour before your flight because there is nowhere to sit.

Also the mafiosi deal they have with the taxi company is crazy. Only one taxi company is allowed to drive you from the airport and they charge a fixed rate of 15 euros to the city. You can go with any taxi company back to the airport and the actual price from the city is just 6 euros.

State will have to find a solution for YM before it makes an airport transaction. YM owes millions to the airport and has no way to repay them. State owned airports don't care that much because they are all part of the same family but trust me a foreign operator will.

.... We will give you the money but it has to stay under country's ownership. That is exactly what these people don't want, they want to fix it and sell it quick, also hiring hundreeds of employees (cousins etc.) for the company looks big when someone isslooking to buy it.... why We always think that the world beyond our borders is stupid ??

Post a comment

EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. A full list of comment guidelines can be found here. Thank you for your cooperation.